Pramila Jayapal Violated a Transparency Law With a Late Stock Sale Disclosure

Rep. Pramila Jayapal is one of Congress’ most outspoken advocates against federal lawmakers trading individual stocks.

But the Democrat from Washington state this week violated the Stop Trading on Congressional Knowledge Act by failing to properly disclose a stock sale she made in 2023, a NOTUS review of congressional financial records indicates.

She joins dozens of other congressional Democrats and Republicans alike who, to varying degrees this decade, didn’t comply with a requirement mandating they publicly reveal any personal stock trade no later than 45 days after making it. By law, federal lawmakers must do so by filing what’s known as a “periodic transaction report.”

In an email to NOTUS, Jayapal said she received stock in consumer goods company Newell Brands — its brands include Rubbermaid, Yankee Candle, Mr. Coffee, Paper Mate, Sharpie and Sunbeam — more than a decade ago from a family member as a gift.

Jayapal valued the shares she sold at $1,001 to $15,000, according to a disclosure she filed with Congress this week. (Federal lawmakers are only required to disclose the values of their stock trades in broad ranges.)

“It was the only individual stock in my portfolio,” Jayapal said. “I sold it and disclosed the sale on my [annual] 2023 financial disclosure but unfortunately missed filing the PTR. Ethics recently pointed out this discrepancy, so I filed the PTR as soon as it was brought to my attention.”

The standard fine the House Ethics Committee levies for STOCK Act disclosure violations is $200, and Jayapal said she is “waiting on further guidance from Ethics as to whether any additional steps need to be taken” in respect to paying a late fee.

Jayapal is a co-sponsor of the Restore Trust in Congress Act, a bipartisan measure introduced in September. As written, the bill would not only bar members of Congress and their spouses and dependent children from trading individual stocks and corporate bonds, but also from owning them altogether.

She’s also a co-sponsor of the more recent Restore Trust in Government Act, a strictly Democrat-backed measure that goes further — in particular, extending stock prohibitions to the president and vice president.

Neither measure has yet received a House committee hearing or vote.

But in January, the House advanced a Republican leadership-backed bill called the Stop Insider Trading Act, which President Donald Trump endorsed last month in his State of the Union address. The bill bans congressional stock trading, but critics say it’s riddled with loopholes, such as allowing lawmakers to retain existing stock holdings and their spouses to trade stocks under certain conditions.

Since July, more than 20 federal lawmakers have reportedly violated the STOCK Act: Sens. Markwayne Mullin of Oklahoma and Katie Britt of Alabama, and Reps. Linda Sánchez of California, Julia Letlow of Louisiana, Jim Jordan of Ohio, Lisa McClain of Michigan, Pat Ryan of New York, Sheri Biggs of South Carolina, Donald Norcross of New Jersey, Rich McCormick of Georgia, Ritchie Torres of New York, Troy Nehls of Texas, Dan Meuser of Pennsylvania, Jonathan Jackson of Illinois, George Whitesides of California, Val Hoyle of Oregon, Austin Scott of Georgia, Shri Thanedar of Michigan, Debbie Wasserman Schultz and Scott Franklin of Florida.

Other members, such as Reps. Cleo Fields of Louisiana and Byron Donalds of Florida, have faced scrutiny for the timing of their personal stock trades.

Congressional stock-ban advocates argue that the existing STOCK Act — signed into law in 2012 to curb insider trading, defend against conflicts of interest and enhance public transparency — is too weak, necessitating stronger measures.

Last week, Jayapal wrote in a Facebook post that garnered more than 4,700 likes: “Today would be a great day to ban stock trading for Members of Congress.”

“I don’t think that Members of Congress should trade individual stocks,” Jayapal told NOTUS. “This was a situation where the process worked and there is transparency and accountability. I fully believe that this process needs to be strengthened and am proud to be leading legislation to do just that.”